AUDJPY Offers Sell Side of the Market

Market Analysis – December 6

AUDJPY bears have seized control after a prolonged struggle in October and early November. During this time, the price moved sideways, reflecting market indecision and hesitation. However, the trend has now shifted heavily bearish, signaling a clear sell-side opportunity for traders. The recent price action showcases a decisive shift in momentum, ending the prolonged period of consolidation.

AUDJPY Key Levels

• Demand Levels: 95.580, 93.870, 91.750
• Supply Levels: 98.630, 99.740, 101.250

AUDJPY Long-term Trend: Bearish

In October, AUDJPY ascended above the key level of 99.740 but quickly became range-bound. The price oscillated between the support at 99.740 and the resistance at the 101.250 supply zone, showing a lack of directional momentum. This indecision persisted until November, when the price broke decisively below 99.740.

The downward breakout was a double break of structure, confirming the bearish trend. Since then, the price has continued to decline consistently below the Moving Averages of periods 9 and 21. These Moving Averages signal sustained selling pressure. Similarly, the Hull Butterfly indicator reveals the strengthening bearish momentum, aligning with the broader downtrend.

AUDJPY Short-term Trend: Bearish

A bearish order block has formed below the key level of 98.630, which serves as a resistance zone. A retest of this block is expected, likely to reinforce bearish pressure toward the demand zone at 95.580. Both the Hull Butterfly Indicator and Moving Averages support this outlook, aligning with the higher timeframe’s bearish display and emphasizing the sell-side dominance in the market.